Baytex Announces 2026 Budget, Three-Year Outlook, Executive Appointment, and Board of Director Changes

Executive Summary

• Baytex Energy announces its 2026 capital budget of $550‑$625 million targeting 3%–5% production growth and a sustaining breakeven price of US$52/bbl.
• Updated $750 million credit facility extended to 2030; annual dividend maintained at $0.09 per share.
• Chad E. Lundberg appointed President & COO; two directors will step down, leaving an eight‑member board (seven independent).

Key Details

• 2026 Capital Budget: $550–$625 M; 45% of spend in H1 2026 for flexibility.
• Production Guidance: 67,000–69,000 boe/d average 2026; Q1/26 forecast 68,000–69,000 boe/d; year‑end target ~70,000 boe/d.
• Asset Allocation: 55% light oil, 45% heavy oil; 35% of budget to Pembina Duvernay, 25% to Mannville (Lloydminster).
• Pembina Duvernay Plan: 12 wells (3 pads) on‑stream in 2026 vs. 8 in 2025; production increase 35% to ~11,000 boe/d, year‑end 14,000–15,000 boe/d.
• Mannville Heavy Oil: 91 wells on‑stream; 43,000–44,000 bbl/d average production.
• Capital Breakdown: Maintenance $435 M (sustaining breakeven US$52/bbl), Growth $50–75 M, Infrastructure $50 M, Exploration & Land $50 M.
• Financial Metrics: Operating cost $13.75‑$14.25/boe; Transportation $3.40‑$3.60/boe; Royalty 15%; Leasing $7 M; ARO $20 M.
• Credit Facility: Updated $750 M covenant‑based facility, maturity extended to June 2030, no interim reviews.
• Shareholder Returns: Portion of Eagle Ford sale proceeds to be returned via NCIB (resumption) and potential SIB; dividend maintained at $0.09/share annually.
• Three‑Year Outlook (2026‑2028): 3%–5% annual production growth, target ~75,000 boe/d by 2028; net cash position to be maintained, optional acquisitions excluded.
• Executive Appointment: Chad E. Lundberg becomes President & COO effective Dec 22 2025 (previously COO since July 2021).
• Board Changes: Tiffany (TJ) Thom Cepak and Angela S. Lekatsas to resign Jan 1 2026; board will consist of 8 members, 7 independent.
• Discontinued Operations & Loss on Disposition: Eagle Ford assets to be classified as discontinued; expected loss $250‑$350 M plus ~$140 M deferred tax expense.
• Earnings Release Date: Year‑end 2025 results slated for March 3 2026.

Notable Quotes

“We are excited by the strength of our Canadian oil and gas portfolio… targeting 3% to 5% annual production growth while investing in exploration and infrastructure…” – Eric T. Greager, CEO

“Mr. Lundberg has been a key contributor to the successful development and expansion of our Canadian portfolio…” – Mark Bly, Chair of the Board

Materiality Assessment: Material – Positive (significant forward‑looking financial guidance, capital allocation, credit facility update, and executive/board changes that are likely to affect investors).